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Investment accounting

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(Querist)
30 September 2013 Why dividend on share purchased from out side is adjust against cost and not shown in income column?
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CA Vijeta Verma

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CA Vijeta Verma (Expert)
30 September 2013 it is a pre acquisition dividend.When you purchase an investment upon which dividend has been or is about to declare then the sales consideration is generally by including the dividend amount in the sales value so that the vendor can equate the loss of dividend which will happen to him as he sells his investment before recieving his divdend
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